The dry powder inhaler may be used to treat asthma or
exacerbations of chronic obstructive pulmonary disease, or COPD,
and airflow obstruction, the London-based company and its U.S.
partner said in a statement. COPD, often caused by cigarette
smoking, is an umbrella term for emphysema and chronic
bronchitis. The drug, to be marketed as Breo in the U.S., was
cleared by the Food and Drug Administration on May 10.

Relvar may generate $992.8 million in worldwide sales by
2017, according to the average estimate of 10 analysts surveyed
by Bloomberg. The once-a-day treatment will compete with twice-daily products, including Glaxo’s Advair and AstraZeneca Plc’s
Symbicort.

The agency’s recommendations are the final stage before the
European Commission, the EU’s executive arm, approves or rejects
a drug for sale to patients in the 28-nation bloc. Glaxo shares
rose 0.3 percent to 1,580.50 pence at 9:05 a.m. in London
trading.

Relvar works by decreasing inflammation in the lungs and
helping the muscles around the airways stay relaxed. The
treatment is a combination of the compound vilanterol and a
corticosteroid.

In the U.S., Breo carries a boxed warning that drugs like
it can increase the risk of asthma-related death. The drug isn’t
recommended for people younger than 18 years old and can
increase users’ risk of pneumonia and bone fractures, the FDA
said.

Glaxo and Theravance are also working on another treatment
for chronic obstructive pulmonary disease, called Anoro. The
once-daily medicine combines vilanterol with another ingredient
to improve lung function. The FDA is expected to decide whether
to approve Anoro in December.